Harrogate has taken a significant step towards a permanent bus station - with the district's bus operator confirming the acquisition of the site from developers, Scottish Widows.

The issue has been a problem of the local authority since deregulation in the late 1980s.

First, the land was sold to London firm Ladbroke, falling into disrepair when the company was refused planning permission for a shopping development on the site.

There was fresh hope when Scottish Widows took up the cause, promising a new bus terminal, as well as a department store and shops.

However, negotiations with Railtrack over adjoining land required for the project, ended in stalemate. As a result, Harrogate and District Travel has never been granted more than a two-month lease on a temporary bus station, established on the site in 1995.

The bus firm's parent company, Blazefield Holdings Ltd, has now announced it has exchanged contracts with Scottish Widows and expects to complete the purchase of the site by the end of this month.

"This is tremendous news for Harrogate, and particularly for our customers," said Blazefield Holdings chairman, Giles Fearnley.

"At last we are in control of the site. We will now work with both Harrogate Borough Council and North Yorkshire County Council to increase the size of the bus station, and to provide improvements to passenger waiting facilities.

"We obtained planning consent for an extended site for buses, utilising part of the existing car park in June, and we will make these improvements as soon as possible.

Blazefield chief Stuart Wilde said: "While we are not ruling out some form of redevelopment on part of the site, what is important is that we can now guarantee the needs of the town's bus passengers will always take priority."